Walmart Overvalued by $70 According to GuruFocus DCF Analysis

GuruFocus conducted a discounted cash flow (DCF) analysis on Walmart Inc. (WMT), finding it to be significantly overvalued at its current price of $106.73.

The DCF earnings-based model estimated WMT's intrinsic value to be $36.00, indicating a margin of safety of -196.5% compared to the current price.

A separate analysis using free cash flow (FCF) also yielded an intrinsic value of $19.50, further supporting the overvaluation perspective.

The consensus among both models and GuruFocus' proprietary GF Value model is that WMT is overvalued, with a margin of safety ranging from -196.5% to -447.3% depending on the method used.

Walmart's GF Score, which evaluates financial strength, profitability, growth potential, valuation, and momentum, stands at 86/100, suggesting a relatively strong performance but lower reliability for DCF inputs due to its predictability rank of 1/5 stars.